BACKGROUND

• Malaysia and Pakistan established the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) on 8 November 2007. MPCEPA came into force on 1 January 2008.

• The MPCEPA encompasses liberalisation in trade in goods and services, investment, as well as bilateral technical cooperation and capacity building in areas such as sanitary and phytosanitary measures, intellectual property protection, construction, tourism, healthcare and telecommunications.

• The full text of the Agreement can be reviewed via this link MPCEPA Agreement

TRADE WITH PAKISTAN

• In 2016:

  • Malaysia’s trade with Pakistan expanded by 11.1% to RM5.56 billion (US$1.34 billion) from RM5.01 billion (US$1.29 billion) in 2015.

  • Total exports increased by 17.8% to RM4.85 billion (US$1.17 billion) from RM4.12 billion (US$1.06 billion) in 2015.

  • Total imports decreased by 20.1% to RM711.9 million (US$172.1 million) as compared to RM891.3 million (US$230.0 million) in 2015.

• Major exports to Pakistan in 2016:

  • Palm Oil and Palm-Based Agriculture Products

  • Chemicals and Chemical Products

  • Electrical and Electronic Products

  • Machinery, Equipment and Parts

•  Major imports from Pakistan in 2016:

  • Other Agricultures

  • Textiles, Apparels and Footwear

  • Seafood, Fresh, Chilled or Frozen

  • Chemicals and Chemical Products

SCOPE
 
Areas covered under MPCEPA include:
 

1. General Provisions

2. Trade in Goods

3. Rules of Origin

4. Customs Procedures and Cooperation

5. Trade Remedies

6. Sanitary and Phytosanitary Measures

7. Technical Barriers to Trade

8. Trade in Services

9. Investment

10. Intellectual Property

11. Economic Cooperation

12. Dispute Settlement Mechanism

13. General Exceptions

14. Final Provisions

 

TRADE IN GOODS

• Under MPCEPA both Malaysia and Pakistan will progressively reduce or eliminate tariffs on their respective industrial and agricultural products. Commitments by the countries are reflected in their Schedule of Commitments.

   

EXPORT-IMPORT PROCEDURES

Exporting to Pakistan

• If you are exporting to Pakistan, please click this link to check on the preferential duties under MPCEPA:

Pakistan - Schedule of Tariff Commitments

• Nevertheless, in order for your product to enjoy the preferential duties, it must fulfill the Rules of Origin (ROO) criteria under MPCEPA.

• Products listed under Pakistan’s Exclusion List (EL) do not qualify for duty reduction or elimination under MPCEPA. The Pakistani importer would need to pay the duty based on the current MFN rate.

 

Importing from Pakistan

• If you are importing from Pakistan, please click this link to check on the preferential duties under MPCEPA:

Malaysia - Schedule of Tariff Commitments

• Nevertheless, in order for the product to enjoy the preferential duties, it must fulfill the Rules of Origin (ROO) criteria under MPCEPA.

• Products listed under Malaysia’s Exclusion List (EL) do not qualify for duty reduction or elimination under MPCEPA. The Malaysian importer would need to pay the duty based on the current MFN rate.

 

RULES OF ORIGIN

How does your product enjoy the Preferential Duties?

• In order for your product to enjoy the preferential duties, it must fulfill the Rules of Origin criteria under MPCEPA which is a Qualifying Value Content of 40% or Change in Tariff Classification.

 

Interested parties can review the specific rules related to your product in the following links:

• Products under the Product Specific Rules

• Procedure and Verification (Appendix on COO)

• Sample of Certificate of Origin (CO) Form -  Form MPCEPA

SERVICES

• The MPCEPA is a comprehensive agreement and it covers liberalization of Trade in Services as well. Pakistan offered maximum foreign equity participation of 60% in all sectors and there are no limitations on the number of Malaysian employed per organization. Sectors of interest to Malaysia include professional services, construction and related engineering services, education services and telecommunication services.

• For Malaysian service providers going to Pakistan:

Pakistan's Schedules of Specific Services Commitments

• For Pakistan service providers coming to Malaysia:

Malaysia's Schedules of Specific Services Commitments

CONTACT US

For Preferential Certificate of Origin / Rules of Origin related matters, please contact:

1. Ms. Nurmaziatul Akmal Che Azhar
   DL : 03-6208 4722
   Email : nurmaziatul@miti.gov.my
    
2. Ms. Mimi Shahirah Sulaiman
   DL : 03-6208 4794
   Email : mimi.mystep@miti.gov.my

 

For other enquiries, please contact the FTA focal point(s) as follows:

1. Mr Fairul Hisham Yahaya
   DL : 03 -62071152
   Email : fairul@miti.gov.my